[Update June 2022: Despite the FED’s rate hike on May 4th and their commitment to continue to raise rates throughout the rest of the year, TD Bank has yet to increase the yields on their CDs. Their CD rates have remained the same for more than 2 years now. This may change soon as the FED rolls out their plan for quantitative tightening and a series of steep rate hikes this month and next.]
TD Bank is the 8th largest bank in the country by assets despite mostly operating on the east coast. They have over 1,200 locations in 15 US states plus Washington D.C. and are headquartered in Cherry Hill, New Jersey.
For savers looking for fixed-rate deposit products, TD Bank offers three different types of certificates of deposit to choose from. They are:
- TD Choice Promotional CDs
- TD No-Catch CDs
- TD Step Rate CDs
All of TD Bank deposits are federally insured by the FDIC up to $250,000 per depositor. We will breakdown the APYs, terms, conditions and details of all of TD Bank’s CDs in our review below.
When viewing TD Bank’s CD rates on their website, you will first be prompted to enter your location.
After you’ve entered your location you will be able to click through their CD accounts options and view their current rates. That said, we ran this scenario in three separate locations and found the exact same annual percentage yields for each. The locations we sampled are:
- Boca Raton, Florida
- Washington D.C.
- Boston, Massachusetts
In this post you'll learn:
TD Choice Promotional CDs
Like all of TD Bank CDs, the TD Choice Promotional CDs feature a tiered interest rate and APY based on your deposit amount. They also feature a “relationship bump rate” which allows you to earn a slightly higher APY if you also have a TD bank checking account.
Terms range from 3 months to 5 years and come with a minimum deposit requirement of $250.
Promotional CD Rates
| CD Term | Deposit Amount | Standard APY | Relationship APY |
| 3 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 3 month | $10,000 + | 0.05% | 0.05% |
| 6 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 6 month | $10,000 + | 0.05% | 0.05% |
| 9 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 9 month | $10,000 + | 0.05% | 0.05% |
| 12 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 12 month | $10,000 + | 0.05% | 0.05% |
| 18 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 18 month | $10,000 + | 0.05% | 0.05% |
| 2 years | $250 – $9,999.99 | 0.05% | 0.05% |
| 2 years | $10,000 + | 0.05% | 0.05% |
| 3 years | $250 – $9,999.99 | 0.05% | 0.05% |
| 3 years | $10,000 + | 0.05% | 0.05% |
| 5 years | $250 – $9,999.99 | 0.05% | 0.05% |
| 5 years | $10,000 + | 0.05% | 0.05% |
To give these offers above some context, the current national average for a 12 month CD sits at 0.21% APY and the average yield on a 5 year CD sits at 0.39% according to recent FDIC data.
While TD Bank calls these deposit products “promotional” their current yields are anything but. If you do decide to open one of these, please remember your money will be locked up for the duration of the deposit’s term. If you need access to your funds prior to maturity, an early withdrawal penalty will apply. If you foresee a chance that you will need these funds prior to maturity, you may want to open a “TD No-Catch CD” which allows for one penalty-free withdrawal per term.
Early Withdrawal Penalties
Withdrawing funds from your TD Choice Promotional CD prior to maturity will cost you some or all of your interest earned. Below is a breakdown of TD Bank’s early withdrawal penalties.
- For CDs with terms of 7 to 89 days, TD Bank will deduct all accrued interest.
- For CDs with terms of 90 days to one year, TD will deduct three months’ interest.
- For CDs with terms between 1 and 2 years, TD will deduct six months’ interest.
- For CDs with terms between 2 and 3 years, TD will deduct nine months’ interest.
- For CDs with terms between 3 and 4 years, TD will deduct twelve months’ interest.
- For CDs with terms between 4 and 5 years, TD will deduct eighteen months’ interest.
Compounding Interest
TD Bank does not state the compounding schedule on their website, however according to their CD rate calculator interest appears to be compounded monthly. Many banks, both online and brick and mortar, compound interest daily resulting in a higher annual percentage yield.
Grace Period
As with most banks and credit unions, TD Bank has a 10 day grace period in which you can withdraw or add money to your CD penalty free. TD Bank will send you a notification prior to your deposit’s maturity, but you may want to have your own reminders set as well. If nothing is done during this grace period, your funds will roll into another CD of the same term and current APY.
TD Bank No-Catch CDs
The “No-Catch” CDs offered by TD Bank currently come with only two deposit terms to choose from: 6 months and 12 months. Although these products have featured tiered APYs in the past based on deposit amount, they all feature the same lackluster yield currently.
The major difference with these accounts is that they allow for one penalty-free withdrawal per term.
No-Catch CD Rates
| CD Term | APY |
| 6 month | 0.05% |
| 12 month | 0.05% |
The minimum deposit requirement is $250.
Interest is compounded presumably monthly on these CDs as well and the same grace period applies. All of these CDs will automatically renew if nothing is done during the grace period.
TD Step Rate CDs
TD Bank’s Step Rate CDs function exactly as their name implies in that your interest rate takes a ‘step up’ on your anniversary each year. You have just two terms to choose from with these products: a 3 year term or a 5 year term.
As an added bonus, the Step Rate CD also comes with a similar feature as the “No-Catch CD.” Upon each yearly anniversary of your CD, you will be given a 10 calendar day window in which you can add or withdraw funds penalty-free. You may withdraw any amount at this time whether it be all of your funds or just a partial amount.
3 Year Step Rates
| Year | APY |
| Composite APY | 0.10% |
| Year 1 | 0.05% |
| Year 2 | 0.10% |
| Year 3 | 0.15% |
The composite APY is simply the blended APY you will have received at the maturity of your deposit term.
5 Year Step Rates
| CD Term | APY |
| Composite APY | 0.15% |
| Year 1 | 0.05% |
| Year 2 | 0.10% |
| Year 3 | 0.15% |
| Year 4 | 0.20% |
| Year 5 | 0.25% |
While the 5 year TD Step Rate CD features the highest yield of any TD Bank CD, it still lags the national average and considerably higher 5 year CD rates can be found with other banks and credit unions.
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